The market for buyers on QCD is going to be smaller so you are limiting your market with a QCD but we buy/sell homes all the time via QCD just need to find the right parties.  

Given that many people have said the average price to build in California is $200 and above per square foot, I became worried.Do you think building a 2-bedroom, 1-bathroom home measuring 550 sqft is feasible at this cost?

It should not matter if they classify it as 'Barney the purple dinosaur' for taxes, the property's comparable sales are other two unit homes that will sell as two unit homes.

Has anyone used their VA home loan to purchase a multi-family unit and move into 1 of the units??

and the fact that rent goes up overtime as well.I know some will keep pulling money out of rentals to buy more or use the money elsewhere, but then they have very little equity in the home. 

Hi Mohan Deep, General Rule: A fixed-term lease typically expires automatically at the end of the lease period without the need for a notice to vacate unless otherwise stated in the lease agreement.For fixed-term leases, if no notice requirement is specified, they typically expire automatically.If your lease requires a two-month notice to vacate, you must provide this notice even at the end of the lease term. 

Between the owner occupancy requirement of JADU, the lack of value added by a JADU, and it often making primary unit rent controlled, the JADU typically is a poor investment.  

I purchased a well-maintained single-family home in a growing suburban community.

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

From my experience, a 1031 doesn't necessarily pay attention to the amount of equity you have in a home, just the sell price.